Organon & Company

Latest Results (03.10.2025):

In the second quarter of 2025, Organon & Company reported total revenue of $1.594 billion, marking a 1% decrease compared to the same period last year. Despite the revenue decline, the company made significant progress in debt reduction and cost optimization, while certain segments showed robust growth.

Revenue Performance

Organon achieved total revenue of $1.594 billion for Q2 2025, a 1% decline year-over-year both on an as-reported and ex-foreign exchange (ex-FX) basis. The Women’s Health segment grew by 3% as-reported and 2% ex-FX, driven by a 15% ex-FX increase in the fertility business. Biosimilars revenue rose by 5% as-reported and 6% ex-FX, primarily due to strong performance of Hadlima®. Conversely, Established Brands revenue declined by 3% as-reported and 4% ex-FX.

Profitability Metrics

For Q2 2025, Organon reported a diluted earnings per share (EPS) of $0.56, down 25% from $0.75 in Q2 2024. Non-GAAP adjusted diluted EPS was $1.00, a decrease of 11% compared to $1.12 the previous year. Net income stood at $145 million, down 26% year-over-year, while non-GAAP adjusted net income was $261 million, reflecting a 10% decline.

Adjusted EBITDA and Margins

The company reported a non-GAAP Adjusted EBITDA of $522 million for the second quarter of 2025, resulting in an Adjusted EBITDA margin of 32.7%, up from 31.9% in Q2 2024. This improvement was primarily driven by a 3% reduction in operating expenses, demonstrating effective cost management.

Debt Reduction Efforts

During the quarter, Organon repaid $345 million of long-term debt and repurchased $242 million of its 2031 Notes, leading to a pre-tax gain on extinguishment of debt. These actions support the company's trajectory to achieve a net debt to Adjusted EBITDA ratio of less than 4.0x by year-end 2025, aligning with its strategic financial goals.

Guidance for Full Year 2025

Organon raised its full-year 2025 revenue guidance to a range of $6.275 billion to $6.375 billion, reflecting improved foreign exchange expectations. The company reaffirmed its Adjusted EBITDA margin guidance of 31.0% to 32.0%, underscoring confidence in ongoing cost-saving initiatives and operational efficiencies.